The Best Stocks to Invest $500 in Right Now

Here are five top Canadian stocks you can buy today for less than $500.

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There’s no shortage of Canadian stocks on the TSX trading at opportunistic prices right now. 

Here’s a well-diversified basket of five Canadian companies that investors can own for less than $500.

Descartes Systems

Descartes Systems (TSX: DSG) has been the top-performing of the bunch of five in recent years. 

Shares are nearing a market-crushing return of 200% over the past five years. 

With the tech stock currently trading just below all-time highs, Descartes Systems is certainly not a cheap stock. Growth investors in search of market-beating growth potential, though, will need to pay up.

If you can handle the volatility, this growth stock is worth paying a premium for.

Bank of Montreal

Bank of Montreal (TSX: BMO) is the perfect company to balance out a high-growth company like Descartes Systems. 

The $80 billion bank can provide a portfolio with defensiveness and passive income and even the odd year of market-beating returns.

At today’s stock price, BMO’s dividend yield is above 5%. In addition to a top yield, the bank has been paying a dividend to its shareholders for close to 200 consecutive years. 

You won’t find many streaks like that on the TSX, especially not with a 5% yield, too.

Northland Power

The renewable energy sector is a great place to be bargain-hunting right now. There are plenty of market-leading renewable energy stocks trading at huge discounts to choose from.

Excluding dividends, Northland Power (TSX: NPI) is trading at a loss over the past five years. The energy stock is down more than 50% below all-time highs, which were last set in 2021.

Short-term investors may not see much value here but there’s a lot of growth potential for long-term investors to get excited.

If you’re bullish on the long-term rise in demand for renewable energy consumption, Northland Power should be on your watch list.

WELL Health Technologies

The virtual healthcare space is another area of the market that’s been taking a beating as of late.

The pandemic led to a sudden surge in demand for telehealth stocks. Companies like WELL Health Technologies (TSX: WELL) skyrocketed in a very short period of time, but those gains were quickly returned. 

WELL Health managed to return more than 400% in 2020. Today, shares are down just about 50% from all-time highs, yet the growth stock remains up almost 200% over the past five years.

It looks like the pandemic-induced volatility has settled, and WELL Health is ready to return to its market-beating ways. 

Shares are up 20% in 2024 the year already. At this rate, the stock won’t be trading at a discount for much longer.

Brookfield

The last pick on my list is a stock that does it all for its shareholders.

As a global asset manager, Brookfield (TSX: BN) is as well-diversified as a stock that you’ll find on the TSX. But despite the stock’s diversified portfolio, it hasn’t had any trouble outperforming the market’s returns. 

Excluding dividends, Brookfield’s return of 75% over the past five years is good enough to nearly double the returns of the S&P/TSX Composite Index.

Investors in need of diversification in their portfolios should have Brookfield on their radar.

Fool contributor Nicholas Dobroruka has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Brookfield. The Motley Fool recommends Brookfield Corporation and Descartes Systems Group. The Motley Fool has a disclosure policy.

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